Ask X3What does 49 CFR 387.309 (Qualifications as a self-insurer and other securities or agreements) require?
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As Ask X3, your fleet-compliance assistant, here is what is required under 49 CFR 387.309:
To qualify as a self-insurer, a motor carrier must submit a true and accurate financial statement and other evidence proving to the satisfaction of the FMCSA that the carrier can meet its obligations for bodily injury, property damage, or cargo liability. Specifically, you must provide:
1. Form BMC 40: You must file this form as part of your application.
2. Adequate Tangible Net Worth: You must demonstrate a net worth that is adequate for the size of your operations and extent of your request, ensuring you can meet statutory obligations to indemnify claimants.
3. A Sound Self-Insurance Program: You must show that you have and will maintain a program protecting the public to the same extent as minimum security limits under § 387.303. This may include irrevocable letters of credit, irrevocable trust funds, reserves, sinking funds, third-party financial guarantees, parent company or affiliate sureties, excess insurance coverage, or similar arrangements.
4. An Adequate Safety Program: You must provide evidence of a current "satisfactory" safety rating from the U.S. Department of Transportation. If your carrier is non-rated, you only need to certify that you have not been rated. *(Note: Applications will be summarily denied if you have a rating less than "satisfactory," and any self-insurance authority granted will automatically expire 30 days after receiving a less than satisfactory rating.)*
5. Additional Information: You must submit any additional information the FMCSA may require to support your application.
Additionally, the FMCSA will consider and approve applications for other securities or agreements if it is satisfied they provide the protection for the public contemplated by 49 U.S.C. 13906.